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Home My WebLink AboutPLN 22-23Report to Executive Committee Report Number: PLN 22-23 Date: June 5, 2023 From: Kyle Bentley Director, City Development & CBO Subject: Esri Enterprise Agreement for the Supply of ArcGIS Software and Services File: L-4100-001 Recommendation: 1. That Council supports the new Enterprise Agreement (EA) with Esri Canada for the supply of ArcGIS software and services, and the City’s participation in the EA for a three year period, at a total cost of $221,490.00 (plus applicable taxes) with annual payments of $71,660.00 for year one (July 15, 2023 to July 14, 2024), $73,810.00 for year two (July 15, 2024 to July 14, 2025), and $76,020.00 for year three (July 15, 2025 to July14, 2026), to be funded from the Current Budget Account 502700.10100.0000 of the City Development Department; 2. That the Director, City Development & CBO be authorized to sign the Esri Proposal to participate in, and commit to, the terms and payment, as set out in Appendix I; 3. That the Mayor and City Clerk be authorized to execute the License Agreement between the City of Pickering and Esri Canada, generally in the form provided as Appendix II to this report, subject to revisions as may be acceptable to the Chief Administrative Officer, the City Solicitor, and the Director, City Development & CBO; and 4. That the appropriate officials of the City of Pickering be authorized to take the necessary actions as indicated in this report. Executive Summary: The City of Pickering has been participating in the Region of Durham’s Enterprise Agreement (EA) with Esri Canada, for the supply of ArcGIS software and services, for the past six years. The Region’s EA with Esri Canada expires on July 14, 2023. In order to secure the continued use of Esri’s ArcGIS software and services by the City for the next three years, staff recommend that the software and services be obtained directly from Esri by means of a “Small Local Government Enterprise” Level 3 agreement (offered to municipalities with a population between 50,000 and 100,000). The ArcGIS software and services provided by Esri Canada are essential elements of the City’s Geographic Information System operations and services. The Small Local Government EA offers more benefits than a sub-licensing agreement through the Region of Durham’s EA with Esri, as discussed in the report. It is recommended that the City enter into the Small Local Government EA with Esri Canada for a three year period starting July 15, 2023. PLN 22-23 June 5, 2023 Subject: Esri Enterprise Agreement for the Supply of Page 2 ArcGIS Software and Services Financial Implications: 1. Total Project Cost for Pickering’s 3-Year License Agreement 3 Year License Extension HST (13%) Total Gross Project Costs HST Rebate (11.24%) Total Net Project Costs $221,490.00 28,793.70 $250,283.70 (24,895.47) $225,388.33 Annual Costs Year 1 Year 2 Year 3 Pickering Costs (excl. taxes) HST (13%) Gross Project Costs HST Rebate (11.24%) Net Project Cost to City (incl. 1.76%) $71,660.00 9,315.80 $80,975.80 (8,054.58) $72,921.32 $73,810.00 9,595.30 $83,405.30 (8,296.24) $75,109.06 $76,020.00 9,882.60 $85,902.60 (8,544.65) $77,357.95 2. Approved Source of Funds – Phase 1 (2023 Current Budget) Account Code Source of Funds Budget Required 10100.502700.0000 Property Taxes $73,000.00 $72,921.32 3. Funds Required For Years 2 and 3 $152,467.01 Discussion: The ArcGIS software and services, provided by Esri Canada, has been used by the City for over 20 years, and it forms the backbone of the City’s Geographic Information System (GIS). The City of Pickering has been a participant in the Region of Durham’s Enterprise Agreement (EA) with Esri Canada, for the supply of ArcGIS software and services, for the past six years. The Region has been the customer, while the City of Pickering and a number of other local municipalities in Durham (e.g., Brock, Scugog and Uxbridge) as well as the Durham Regional Police Service, have been affiliates to the agreement. The Region has recently approached the affiliates, indicating that the Region’s EA with Esri is expiring on July 14, 2023. At the time of writing this report, the Region has not informed the City of the proposed costs, and associated terms, to renew the contract for the next three years with them. However, it is expected that the costs may be similar to what is being offered by Esri through their Small Local Government EA. PLN 22-23 June 5, 2023 Subject: Esri Enterprise Agreement for the Supply of Page 3 ArcGIS Software and Services Past Esri software and service agreements through the Region have used a cost formula based on deployed software (maintenance cost only) at 60 percent, and population at 40 percent. A 2.6 percent uplift has been applied across all municipalities from year one to year two to help plan changing budgets. While the Region offered uncapped products in the previous agreements, the City was always required to request a specific number of licenses within each agreement, and the agreement limited our access to training packages, User Conference attendance, and user support from Esri. Esri has also been offering Small Local Government EA’s directly to municipalities, based on Statistics Canada population data. The City was considered a Small Local Government EA back in April 2020, when we last signed an agreement with the Region. However, the costs of such agreement would have increased substantially once the City’s population reached 100,000, so procurement proceeded though the Region’s three-year EA instead, principally to keep the costs stable while Pickering grows. In accordance with Esri’s current offer, included in Appendix I to this report, the City is now being offered a Small Local Government EA for the next three years, based on a population count locked in at below 100,000. Further, the products and benefits associated with this offer appear to be much greater and more beneficial to the City, than what would be available through a renewed EA with the Region. This is explained in more detail below. In accordance with the permissions available through the current Esri EA with the Region, the City is using a combination of license types within four products: 30 online licenses: 14 portal licenses; 10 desktop licenses; and one City Engine license. Although the City was seeking to increase these numbers to 50 online licenses, 20 portal licenses and 15 desktop licenses, the new Small Local Government EA directly from Esri, will provide the City with 500 online licenses and 250 portal licenses. These licenses will permit changes to the database, unlimited licenses for viewing only, as well as uncapped desktop licenses, and two City Engine licenses (3-D mapping tools). Additional benefits and products offered through this new EA include: eight additional analysis tools; three development tools; seven add-on modules; professional services hours; permission to four users to attend the annual Esri User Conference; and authorization to four individuals to contact Esri for user support. The ability to reach out directly to Esri Canada for troubleshooting, instead of working through the Region, will save time from an operational and maintenance perspective. The ArcGIS software and services provided by Esri Canada are an essential element of the City’s Geographic Information System operations and services. Entering into a new Enterprise Agreement with Esri Canada is not only crucial to maintaining our GIS operations and service delivery to the public and external agencies, but will also provide the City with added benefits and operational efficiencies at a lower cost. Accordingly, staff recommend that Council support the new Small Local Government EA with Esri Canada for the supply of ArcGIS software and services, and the City’s participation in this new EA for the next three years, starting July 15, 2023, in accordance with the Sales Proposal and the terms and conditions of the Small Local Government EA set out in Appendix I to this report, and that the agreement be executed. PLN 22-23 June 5, 2023 Subject: Esri Enterprise Agreement for the Supply of Page 4 ArcGIS Software and Services Further, it is recommended that the Mayor and City Clerk be authorized to execute the License Agreement between the City of Pickering and Esri Canada, generally in the form provided as Appendix II to this report, subject to revisions as may be acceptable to the Chief Administrative Officer, the City Solicitor, and the Director, City Development & CBO. This report has been reviewed by the Director, Finance & Treasurer, the Director, Engineering Services, and the Division Head, Information Technology. They concur with the contents of the report and its recommendations. Appendices: Appendix I Esri Letter & Cost Proposal Appendix II Draft Esri Small Government Enterprise Agreement Prepared By: Original Signed By Jill McMullen Supervisor, Geomatics Original Signed By Déan Jacobs, MCIP, RPP Manager, Policy & Geomatics JM:ld Approved/Endorsed By: Original Signed By Catherine Rose, MCIP, RPP Chief Planner Original Signed By Kyle Bentley, P. Eng. Director, City Development & CBO Recommended for the consideration of Pickering City Council Original Signed By Marisa Carpino, M.A. Chief Administrative Officer Appendix I to Report PLN 22-23 Esri Letter & Cost Proposal Appendix II to Report PLN 22-23 Draft Esri Small Government Enterprise Agreement